#2211878 - 04/23/19 06:56 PM
Re: Escrow Cancellation Notice - Refund of Surplus
Anonymous
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10K Club
Joined: Nov 2000
Posts: 18,763
Central City, NE
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I see your point Dan. In my "keep it simple" mentality, I have a mental note that says "anytime you close out an escrow account, provide a loan payoff (short year) statement." However, I agree that it isn't technically triggered if the loan continues without the escrow account. I don't think this is the intention, but a technical loophole.
One way or another, I think you've got to get the borrowers a statement showing historical and the old projection information. As you question - does this trigger an annual analysis - which is really what a loan payoff statement is (without a new projection)? Also, if you didn't provide a loan payoff statement now, would you owe the borrowers one later when the loan is actually paid off? If so, it could be very difficult (impossible) to provide the information years later.
In summary, Dan's right that a loan payoff statement is not technically triggered if an escrow account is closed, but Iyou may need to later anyway. I'm going with the path of least resistance and simply providing it now.
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#2212074 - 04/25/19 02:50 PM
Re: Escrow Cancellation Notice - Refund of Surplus
Anonymous
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Anonymous
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Thank you both. I agree, I think just cutting a short year statement is the easiest. Thank you for pointing out. As to the second part of my question - Our operations department wants to deposit any surplus into the customer's deposit account. I am against this and want a check mailed. One of my concerns is that if the loan is a joint loan and the deposit account is not titled as a joint account, we would not be giving both parties access to the funds. Also, if there happened to be other joint owners, they would be getting the benefit of money that is not rightfully theirs. Plus a check would just be a cleaner paper trail. Your guidance is appreciated!!!
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